Thank you, Karl, for staying on top it this. And thanks to the knowledgeable people who add useful insight.

The KNST host says about the shooting today, "the one thing we can all agree on is the rule of law." It would be nice if we all really could agree that the rule of law is important, wouldn't it?

I got about halfway through the amicus brief....

Really, the mind boggles at this. There is an absolutely stark discontinuity in the constructable sequence of events. Things were handled properly, or apparently properly, up to a point; and after that point NOTHING, ZERO is handled properly. At least in these instant cases.

Hey!
Those institution investors looking after my grannies money are getting paid because they are smarter than the average person. It's impossible for them to be taken in by so obvious. ... A swindle ???

It must be a collusion of of the willing.

jal

Yep; -that's that.

They have been caught lying and trying to seize that which they Themselves make no prior claims of Ownership to.

They are ****ing Grand Larcenists, Perjurers, Frauds; and it is now irrefutable.

1. This is pretty much an open and shut case at this point: how many Criminals involved in this are going to be stripped of their Loot and go to Prison?

2. Obviously the Trusts have serious deficiencies and need to be fully audited by the IRS; a ******ned fortune in unpaid taxes are waiting to be garnished.

3. The MBS should be put-back and the Banks forced to pay restitution for damages relating to the flawed transactions.

4. The Securitized Mortgages are going to have to be reviewed to find out Who owns what and what needs to be done to heal the Title issues.

5. MERS should be shut down immediately as it is acting as a conduit to illegal activity of various kinds; this should be done at the Federal Level.

What's completely crazy about this whole steaming pile is that not only have pensions and investors of all categories been snaked and national treasuries destroyed; and maybe one could say "caveat emptor" with regard to this or *any* investment....the sheer amount of time and clerical effort it will take to correct the incredibly convoluted errors and instances of perjury out of the proerty-recording systems of counties everywhere is probably enough to place a lien on the entire capitalizations of the larger banks. Literally, it's beyond comprehension.

Has anyone read the complete version of this? Supposedly has more arguments, exhibits, and flow charts etc. Marie made the comment back in October that the evidence was irrefutable and the MASC would uphold the Land Court. Now that the judgment is in, she's probably getting a lot of hits and donations for that amicus, as this is an epidemic of fraud throughout the country and every lawyer will be using this to make their arguments. Talk about bogging down the court system... what a complete mess Wall Street has created...

I wish I knew more about fraud examination. It's a good time for that type of work...

Pretty amazing stuff.

Kudos Marie McDonnell. May your name become a household word.

The words she applied to Judge Long could equally apply to her:

Quote:

Judge Long carefully considered the facts before him in Ibanez and LaRace, and he accurately applied the relevant Massachusetts General Lawa and case law in his well reasoned Memorandums and Orders of March 26, 2009 and October 14, 2009. His decisions are a hallmark of fairness and justice; they are a credit to the man, and to the American system of jurisprudence.

I guess there really are heros.

I hope we see more of her handiwork.

This is great because the banks have been in clear violation of the law, and are responsible for making bad loans and driving the price of houses through the roof for nothing more than greed. Houses, as expected are quickly heading towards 2-3X yearly earnings which they may actually break through on an avg basis. I enjoy trading to the short side on the banks as I firmly believe that each and every national is insolvent. However, there is another side of this. The 'home loaner', you know, those people who maxed out their homes ATM card, stopped paying their mortgage and have been in homes for 1, 2, 3 YEARS. That is just as equally absurd. Foreclosures and evictions NEED to happen and properties need to be sold to the highest bidder. Unfortunately this is just delaying that and hurting every single 'renter' in the entire country.

Are the monthly remittance reports publicly available or do they have to be subpoenaed?

Another homeowner who was current on his loan and inquired about a refi is in trouble. He called JPM Chase and was told that he would need to be behind on payments to be considered. Ever heard of that story before? This time the homeowner is a judge. He is now fighting foreclosure.

http://blog.cleveland.com/metro/2011/01/....

This makes about 100 times that I have read the same thing about JPM. Why can't there be a criminal investigation?

BTW, HR 3808 is alive and lurking in committee again.

Latest Action: 11/17/2010 On motion to refer the bill and the accompanying veto message to the Committee on the Judiciary. Agreed to without objection.

http://thomas.loc.gov/cgi-bin/thomas

So the boxes are all empty. Putbacks wont help our economy. Only a small fraction of the putbacks could be returned. And none of us are going to be first in line. Yes the banks would all go boom. But no, it would actually make things even worse.
Maybe we should start paying our mortgage payments to our local district attorneys office. Let the debtors show proof to the DA that they have the right to any compensation. If they cannot then let the county set a payment for the homeowner based on previous assessment. That keeps the people in that county happy. Then we can let the geniuses fight over something other than our homes and jobs.

Is it time for all of us to talk about a prudent monatary system? Please dont get gold standard goofy. We need to look at all options that could work. The gold standard would get us invaded by a huge army of a fiat country. Looting a country full of gold coins would be worth it. Paper money is a must. All new money should be given to the working poor. Rather than handed to the top 1%.

If you dont like my ideas put up yours.

are the big banks' shares gonna tank monday morning?

i been hearing that anywhere from 1262/1257 are key areas of breach on the s$p.
after that it's no man's land. supposedly.

"Putbacks won't help our economy."

Why not? One of the necessary ingredients for a decent economy is confidence. That means confidence to spend, confidence to invest, confidence in the rule of law. A businessman needs a certain level of confidence to put capital to work in plant, equipment, or labor. After seeing what you have read here, if you were at the top of a medium-sized enterprise and sure you saw a clear opportunity to expand your business, would you feel confident that JPM or Goldman would give you fair treatment? Would you be their valued client, or would you merely be their counterparty?

Personally, I want these crooks behind bars. They are walking, talking object lessons that, in our society, crime pays and predators enjoy fine dining. I want to see the entire Congress lean on the executive branch and insist that fraud be prosecuted at the top of the heap. Don't stop there. Prosecute the little fish too. We don't need crime incubators.

There is little reason to have confidence. Anyone who puts productive money at risk right now is probably more foolhardy than wise.

@Throxx
Couldn't have said it better myself!

MERS DOWN RIGHT NOW.

Azusgm only a small % could be putback. Some here have suggested it would only take a max of just 20% to BK all of them. That is an 80% haircut to all of our funds. Oh and the banks keep the notes.

This is really a fascinating story. I read that case late last night and the understanding fell in place. The reason the whole mess falls apart is the deeds of trust were never transferred through the chain of title. Endorsement in blank might be well for checks and bearer bonds, but we are talking about real estate titles. UCC stands for uniform commercial code and I believe it is uniform throughout the US save for Louisiana, which follows another kind of law. Mortgage law isn't uniform throughout the United States and we are talking land titles in states like Texas and Massachusetts. The mortgage is the ownership of the real estate involved, which is why there isn't a court necessary to foreclose. What is necessary is all sales of real estate has to be in writing, so endorsement in blank is a sale to no one and thus no sale. The only way the banks and others can remedy this situation is to produce back dated transfers. This answers the language in the posted trust, endorsed in blank, where recordable. You can't record a blank assignment or a chain of title in blank because it holds no force in law in states where real estate transfers must be in writing. You can bet the Texas foreclosure game is going to be a real mess, as there have been millions moving into Texas and the foreclosure rate was high coming into the crisis, namely because houses weren't going up in price very fast here. I believe Option One is a Wells Fargo outfit, as I had pulled up a note doing investigation on a rental applicant I had last year.

For the sake of argument for some of you that are having trouble grasping this, a mortgage in Texas is called a deed of trust. It is an ownership position in a piece of real estate. All sales of Texas real estate have to be in writing and a sale of something to no one, then to no one, then to no one, then finally to someone isn't a sale. It is not possible to confirm a sale with an endorsement in blank. Thus Structured Assets or whomever the depositor was must have an endorsement to them from a party that had an endorsed assignment to them and so forth or the sale never happened for them to have received the property. There are states where this procedure is legitimate, which is why the term where recordable appears. In those states, the mortgagee doesn't hold an ownership position in the real estate. Reading that case is a must and it spells out what a mess we have coming down the pike. I would venture that Wells is going to eat a ton **** and we might find out they have known this for some time with their off balance sheet stuff. I don't believe MERS having a mere record of transfer is enough in deed of trust states in any case where the mortgage has been sold with an assignment in blank. The opinions in this case are real masterpieces and sound in their legal and lawful reasoning. One justice even chides the banks for being in such a hurry to pass around the paper they just got sloppy and that just because they were in a hurry didn't mean they didn't have to follow the laws of the state.

This is a mess.

What are the chances that the gov will create another Resolution Trust Corp like they did in the 80s? All unresolved loans go into the trust - the gov negotiates a new loan with the buyers, and cuts a deal with the banks regarding putbacks/taxes owed. Heck, they could create a "pool" of banks to handle the new loans.

Just a late night "what's the worst, and therefore most likely, solution" game.

Jen

Andy, a whole bunch of them are going to be put back because they were never put in the trusts in the first place. The Massacusetts supreme court just said so. There is no telling what is really going on, but I do know Karl has said over and over again that he was curious what was in the off balance sheet stuff of Wells. Could we have a bunch of make believe sales where only the required income and the losses were passed on? Read the case posted yesterday.


title-theory states
Those states in which mortgages are treated as passing legal title to the lender, with the borrower having equitable title. Typically title-theory states employ a deed of trust instrument rather than something called a mortgage.If the borrower pays the debt in full, then the lender reconveys the property to the borrower. Contrast with lien theory states and with hybrid theory states.

http://financial-dictionary.thefreedicti....

The putbacks need to happen, but Tim Geithner has already stuck you and me and the investors (including funds) with a huge chunk of the pain. Remember this Ticker from last week?

http://market-ticker.org/akcs-www?post=1....

FRE/FNM have already allowed huge haircuts to the amounts to which they are legally entitled from BAC. You may be sure that even if FRE/FNM were ultimately forced to put back every single loan from BAC that was under contention last week, that pennies-on-the-dollar settlement would prevail over the contracted value. Unless the new Congress can force FRE/FNM into resolution, the bondholders will feel no direct pain that they can attribute to their GSE bonds. On Christmas Eve 2009, Geithner granted FRE/FNM "unlimited" support from Treasury. In other words, the Fed will print up a windstorm of "money" to paper over the situation. The pain will come in the devaluation of the currency.

The way things are being done, more power and more assets (including real estate) are being consolidated to benefit the few. It is legalized, permanent looting. As the buying power of your wages or the liquidation value of your assets are diluted, you are being robbed of your labor and your hope of seeing your family maintain a decent standard of living or level of freedom. The way things are being done will not prevent the pain but merely delay the recognition of the damage. Gangrene is being allowed to set in.

Hope and change.

Besides the illegal foreclosure issue, there is another large issue. The mortgage backed securities apparently are not backed by the actual mortgages. They are not asset backed securities, and are hence much more risky than represented. This goes beyond non performing mortgages to all mortgages that were not placed in the MBS.

Example: I borrow $100,000 from you and give you a promissory note describing how much I borrowed and how I will pay you back. Versus, I borrow $100,000 from you and give you a promissory note describing how much I borrowed and how I will pay you back and I give you title to my home as security. Which of these scenarios is the riskier?

The value of MBS now are very suspect as the risk has gone up. Sure glad we taxpayers don't own any of these things. Doh!

What if the banks dont have the money to return all of the MBS? How does putting it back on the taxpayers help the economy? If they put all of them back, I still wont get back the money from my 401k. Oh, and the bank keeps the note. The point of MERS is and always was to do bad things with the "missing" notes.

Crying about how bad the banks are does not solve anything. The question was. What can we do to stop them and avoid a MAD MAX world? Taking all the notes away from the banks stops all those games. Putback will help Bill Gross and a few other snake oil salesmen. But it will not create any jobs exept for lawyers.

Fixing stuff is what I do. First you determine the actual problem, then you find the cause, then you test the part in question, then you change the bad part, then you prove that it works. Then, and only then, can I get paid. The payoff of a working economy is the goal. The work needs to get done. Crying fixes O. The Ma ruling does identify the problem, but it is not a solution. I'm talking about saving a nation, screw the bankers and ALL of thier friends.

Putting the notes back on the banks and blowing them up will clear the debt. The market will find a trading price for homes sooner (which is going to be much lower than it is now.) This will free the economy from the insoluble debt and the stranglehold that the financial system has on it.

It won't be a path without pain, but it's a resolution that will actually work.

It's also the only one that will actually work.

Quote:

What if the banks dont have the money to return all of the MBS? How does putting it back on the taxpayers help the economy? If they put all of them back, I still wont get back the money from my 401k. Oh, and the bank keeps the note. The point of MERS is and always was to do bad things with the "missing" notes.

The losses on these mortgages are real, no matter what we do we can't prevent someone from taking them. Putting them back makes the banks who's fraud is responsible for creating this situation take the losses, instead of the investors such as our pension funds.

Echoing what Gen said I don't think we get a sustainable economic recovery until we blow up the financial system which just continues to leach more and more capital from the real economy.